Effect of Innovation on Competitive Advantage of Telecommunication Companies in Kenya

Abstract

The purpose of the study was to investigate the effects of financial innovation on competitive advantages of telecommunication companies in Kenya. The study used survey co-relational research design. The target population for the study was comprised of 250 respondents. The study used both secondary data and primary data collected using questionnaires both structured and unstructured. Data reliability and validity was tested subsequent to the data collection. Quantitative data was analysed using descriptive statistics while qualitative data was analyzed using content analysis. The data collected was coded and analysed using the statistical package for social sciences (SPSS). The responses from the unstructured questions was organized into themes due to their qualitative nature and then coded appropriately for analysis. The study findings made the following conclusions and recommended on the same: telecommunications companies indicated growth through financial innovations that gave them a competitive advantage in the ICT (Information, Communication and Technology) field; financial innovation affects positively the performance of telecommunications companies to a great extent hence they are considered often important for developing services in the telecommunication companies giving them the competitive advantage in the telecommunications field; telecommunication companies have different aims of financial innovations that provide the companies with the competitive advantage. From the study the major objective of financial innovation is process evaluation and the dimensions of financial innovations were identified as product, service innovation and process innovation. From the study, product innovation was rated to a great extent having the greatest positive financial performance according to the organisation’s objectives.